UGI Q3 Earnings Surpass Estimates, Revenues Decline Y/Y

Core Insights - UGI Corporation reported fiscal third-quarter 2024 operating earnings of 6 cents per share, exceeding the Zacks Consensus Estimate of a loss of 5 cents per share by 220% and improving from break-even earnings in the same quarter last year [1] Total Revenues - Total revenues for the quarter were $1.38 billion, missing the consensus estimate of$ 1.67 billion by 17.3% and declining 16.9% from $1.66 billion in the year-ago quarter [2] Segmental Results - **AmeriGas Propane**: Revenues of$ 445 million, down 13.4% year over year, with retail gallons sold decreasing 12.9% due to warmer weather and customer attrition [3] - UGI International: Revenues of approximately $455 million, down 25.5% from the previous year, with retail volume decreasing 3.8% [3] - **Midstream & Marketing**: Revenues of$ 253 million, down 9.3% year over year [3] - UGI Utilities: Sales of $257 million, down 7.6% from the year-ago period [4] - **Corporate & Other**: This segment incurred a loss of$ 30 million, wider than the prior-year loss of $23 million [4] Highlights of the Release - The company reported strong third-quarter results driven by record earnings from natural gas businesses and improved results from UGI International [5] - Operating and administrative expenses decreased by$ 38 million year-over-year [5] - Total interest expenses remained flat at $96 million compared to the previous year [5] Debt Management - The company has refinanced over$ 1 billion of debt this year and reduced approximately $460 million of debt at AmeriGas Propane [6] Guidance - UGI anticipates fiscal 2024 adjusted earnings to be in the range of$ 2.70- $3.00 per share, with the Zacks Consensus Estimate at$ 2.92 per share, higher than the midpoint of the company's guidance [7]